November 2015 www.xtek.net | 1800 500 032 | 90 103 629 107 1 - PowerPoint PPT Presentation

November 2015 www.xtek.net | 1800 500 032 | 90 103 629 107 1

Forward Looking Statements This presentation includes forward-looking statements that are subject to many risks and uncertainties. The risks are discussed in XTEK’s ASX announcements and risks associated with economic conditions, movement in exchange rates, industry risk as well as law, regulatory and policy risk. XTEK disclaims any obligation to update information contained in these forward-looking statements whether as a result of new information, future events, or otherwise. www.xtek.net | 1800 500 032 | 90 103 629 107 2

What we do XTEK designs, makes, sells and supports specialist equipment and machinery to help protect and sustain Defence, police, security and other agencies. This is done through three key divisions: • Agency Business • Logistic Engineering • Engineering Development: XTEK Innovations www.xtek.net | 1800 500 032 | 90 103 629 107 3

4 Year Financial Trend FY 2012 FY 2013 FY 2014 FY 2015 Revenue from sales of 4,336 4,326 5,318 12,044 goods and services $'000 Gross profit from sales of 1,697 1,856 2,488 2,748 goods and services $'000 Gross profit % 39% 43% 47% 23% Other income 151 5,070 391 588 Net profit $'000 -1,087 -773 -223 231 $15 Millions $13 $12.63 $11 $9 $7 $5.71 $5 $4.52 $4.83 $3 $1 $(1) FY 2012 FY 2013 FY 2014 FY 2015 www.xtek.net | 1800 500 032 | 90 103 629 107 4

Investment proposition • XTEK has two cutting-edge innovations with large and global addressable markets XTclave ™ patented process to create advanced ballistic protection laminates and lightweight structural composites XTatlas ™ unique contextual real-time mapping solution currently under development • Significant milestones and stock re-rating opportunities over next six months www.xtek.net | 1800 500 032 | 90 103 629 107 5

Well Funded for the Future • XTEK secured a three-year $10m equity facility with Kentgrove Capital that will keep it well funded over the coming years. • XTEK can raise cash by issuing shares to Kentgrove at a 5% discount to market price in tranches of between $100K and $500K. • The capital raising is totally at XTEK’s discretion and the funds will be used to expand the business (i.e. commercialising XTclave TM , developing commercial UAS solutions, M&A etc). • XTEK has no debt www.xtek.net | 1800 500 032 | 90 103 629 107 6

XTEK Innovations www.xtek.net | 1800 500 032 | 90 103 629 107 7

Made by XTEK Australian made, worldwide potential www.xtek.net | 1800 500 032 | 90 103 629 107 8

XTclave TM – Game Changer • XTclave TM – a unique solution to manufacture stronger, lighter, stiffer and complex shaped composite items, using circulating fluids at high temperature and high pressure to achieve excellent and even bonding www.xtek.net | 1800 500 032 | 90 103 629 107 9

US Defence Funding • United States DoD Comparative Testing Office (CTO) awarded XTEK a contract for approximately US$1.5m to develop advanced lightweight hard armour plate solutions using XTclave ™ • This program is potentially key to future body armour contracts for the US Army and validates the XTclave TM technology www.xtek.net | 1800 500 032 | 90 103 629 107 10

US Market • XTclave TM can make lightweight personal hard armour plates • Well placed to negotiate joint venture / licensing with US manufacturers in 2016 • US Total Available Market for personal hard armour protective plates over the period 2017- 2022: US$2.2bn • Helmets and many other applications in and outside the US Market www.xtek.net | 1800 500 032 | 90 103 629 107 11

XTatlas TM – a unique solution Google Maps Image • Most Drone / UAS video feeds do not show the video image in context to a map in real-time; and are not capable of producing accurate mapping on the fly. • A video feed image in context capability has, to date, been restricted to large expensive high performance UAS used by Defence and strategic Government intelligence agencies, showing map coordinates only. • Creation of accurate mapping from imagery is usually a post flight process; and difficult to generate, especially from video, without survey accurate ground control. XTatlas TM Mosaic Mapping XTatlas TM is potentially a disruptive game changer capability in the UAS market www.xtek.net | 1800 500 032 | 90 103 629 107 12

XTatlas TM – Contextual Video www.xtek.net | 1800 500 032 | 90 103 629 107 13

UAS market – Forecasts • The global market for UAS is estimated to grow from US$6.76bn in 2014 to US$10.57bn by 2020 – a CAGR of 7.73%. • The global market for Commercial UAS is estimated to grow to US$1.27bn by 2020 – a CAGR of 109.3% and 12% of the total UAS market. Source: MarketsandMarkets.com. www.xtek.net | 1800 500 032 | 90 103 629 107 14

UAS Military & Civil • The production of UAS for the Military is forecast to grow from 4,500 units in 2015 to 7,000 in 2020. • The Civil UAS production is forecast to grow from approximately 2,500 units in 2015 to over 20,000 units in 2020. www.xtek.net | 1800 500 032 | 90 103 629 107 15

XTEK will also build and sell XTatlas TM capable UAS.  UAS market – XTatlas TM XTEK is focused on providing XTatlas TM to the Defence and Commercial UAS markets, a multi-million $ market opportunity over the period 2016-2020 • XTatlas TM software sales • XTatlas TM UAS sales • XTEK intends to partner with multiple UAS suppliers to integrate XTatlas TM into their systems and also build and sell XTEK XTatlas TM capable UAS www.xtek.net | 1800 500 032 | 90 103 629 107 16

UAS Revenue Streams • AeroVironment Agency Account • UAS Services • XTatlas TM digital imagery technology www.xtek.net | 1800 500 032 | 90 103 629 107 17

AeroVironment • Has supplied 85% of Pentagon UAS fleet • Delivered more than 22,000 small unmanned aircraft worldwide • Australian military acquisition of UAS has further potential • Law Enforcement potential www.xtek.net | 1800 500 032 | 90 103 629 107 18

XTEK UAS Services • Logistics Engineering • Mapping and Imaging support • Training: • Flights for Mapping • XTatlas TM • Agisoft software www.xtek.net | 1800 500 032 | 90 103 629 107 19

Blaser Chassis www.xtek.net | 1800 500 032 | 90 103 629 107 20

Blaser Chassis • Bespoke chassis for Blaser Tactical 2 Long Range Weapon System. Now in service with the Australian Army. • Ambidextrous folding rear-section that captivates a closed bolt handle and reduces system bulk. • Chassis incorporates traditional in-house CNC machining, injection moulding and XTclave TM capabilities that offer increased strength and stiffness. • Further sales to Australian Army expected www.xtek.net | 1800 500 032 | 90 103 629 107 21

Product Lines expanded • IDenta Corp • Kirintec • SCG Canada Inc. • ADF Solutions • Crossmatch • Swift Radioplanes • iSSUK • SAN Challenging Engineering • Simmersion Holdings www.xtek.net | 1800 500 032 | 90 103 629 107 22

Conclusion • Two company-making milestones in next six to nine months: Commercialization of XTatlas ™ and validation of XTclave ™ technology by US DoD • XTatlas ™ and XTclave ™ have huge global applications • FY15 was an Inflection Point for XTEK with improving revenue and profitability • Well funded for the future with $10m call facility • Significant potential for future UAS sales in Australia • Undervalued share price www.xtek.net | 1800 500 032 | 90 103 629 107 23

Questions www.xtek.net | 1800 500 032 | 90 103 629 107 24